59 W o lsele y plc A n n u a l R e p o r t a n d A c c o u n t s 20 1 2 Ov er vi e w P e r f ormance Go v ernan ce F i nan cial s I n f o rma t i o n P r od uc t Integrit y H o w d o e s P r o d u c t I n t e g r i t y u n d e r p i n o u r strat e gy A t W o l s e l ey p r o d u c t i n t e g r i t y m e a n s e n s u r i n g th at we s o u rc e a n d s u p p l y s a fe p r o d u c ts th at a r e of s u i t a b l e q u a l i t y a s ef c i e ntl y a s p o s s i b l e I n d o i n g s o we i m p r ove th e ef c i e n c y of o u r p r o c e s s e s a i m t o i m p r ove o u r m a rg i n s avo i d l i a b i l i t y a r i s i n g f r o m d e fe c t i v e p r o d u c ts a n d m a i n t a i n o r g r ow m a r k et s h a r e th ro u g h e n h a n c e d c u s t o m e r s a ti s f a c ti o n and con dence What does P roduct Integrit y ent a il P r oduct in t e grit y include s e n s u r i n g th at o u r p r o d u c ts a r e re l i a b l e a n d ro b u s t a n d s a fe w h e n u s e d fo r th e i r i n t e n d e d p u r p o s e a n d u n d e r s t a n d i n g o u r b u s i n e s s p a r t n e r s th e q u a l i t y of th e i r sys t e m s a n d h o w th ey c o n d u c t th e i r b u s i n e s s a n d p r ov i d e th e i r s e r v i c e s a n d e n s u r i n g c o m p l i a n c e w i th l e g a l s t a n d a r d s W h a t d i d we a c h i eve i n 2 0 1 1 1 2 W e i s s u e d a G r o u p w i d e P r o d u c t I n t e g r i t y p o l i c y T h is is suppor t e d b y a standar d opera t ing frame w ork t oi m p rove th e i n t e g r i t y of th e p r o d u c ts we s o u rc e Business units ha v e begun t o implement more st ructured pro c edure s f o r t h e e v aluat i on o f suppliers and pro d ucts S o m e a l re ad y c o n d u c t m o r e sys t e m ati c r i s k a s s e s s m e nts i n a c c o rd a n c e w i th th e n e wp o l i c y T h i s a c ti v i t y w i l l c o nti n u e th ro u g h th e n e x t n a n c i a l ye a r W e cont inued t o st rengt h en our t i mber sourcing po li cie s and pro c edure s In Mar ch 2 0 1 3 t h e E U T i mber Re gula t i on E U T R will come in t o e f f e ct T h e r e gula t i on in t r oduce s obliga t ions f o r con rming th e i n t e g r i t y a n d s o u rc e of p r o d u c ts o n th e o p e r at o r a n d o r impor t e r o f t h e t i mber pr oduct s O p era t ors must impleme n t a d u e d i l i g e n c e p r o c e s s w h i c h e n a b l e s th e m t o tr a c e ti m b e r pr oduct s at e v e r y stage in t h e chain o f cust od y a n d t o c o n r m th e i r l e g a l i t y at th e p l a c e of h a r v e s t W o l s e l ey h a s a l re ad y b e e n a s s e s s i n g i ts ti m b e r p r o d u c ts fo r a n u m b e r ofye a r s a n d wo r k i n g w i th a s p e c i a l i s t b u s i n e s s p a r t n e r h a sd eve l o p e d a sys t e m w h i c h we ex p e c t w i l l m e et th e re q u i re m e nts of th e EU T R E f f o r t s t o impr o v e our commit me n t t o pr oduct in t e grit y a r ec o n ti n u o u s I n ad d i ti o n t o th e i n tro d u c t i o n of g r e a t e r consist e ncy in our pr oce s se s t h e r e is no w close r c o l l a b o r ati o n a m o n g s t o u r s o u rc i n g a n d q u a l i t y a s s u r a n c e a n d q u a l i t y c o ntro l s p e c i a l i s ts w i th i n th e G r o u p t o e n s u re th atb e s t p r a c ti c e s a r e s h a r e d m o r e ef fe c t i v e l y W h a t a r e o u r o b j e c t i v e s h o w d i d we p e r f o r m i n 2 0 1 1 1 2 a n d w h a t a r e o u r o b j e c t i v e s fo r 2 0 1 2 1 3 Metrics 201213 objectives P r oduct in t e grit y me t r ic s will begin t o be r e por t e d d u r i n g 2 0 1 2 1 3 T h e s e w i l l fo c u s o n i m p r ov i n g th e r e liabilit y o f our supplie r s re d u c i n g th e va l u e l o s t t h r o ugh de f e ct iv e pr oduct s s u p p l i e d t o u s a n d e n s u r i n g th at we h a ve sound con t ract pr ocedur e s i n p l a c e th ro u g h o u t o u r busine sse s T o conduct risk as se s s me nt s against all o f o ur major pr oduct ca t e gorie s T o measur e our P r oduct In t e grit y per f ormance against agr e e d met r ic s UK A w ar ded I S O9 0 0 1 Cer t ica t i on T h e UK busine ss has achie v ed IS O9 0 0 1 2 0 08 cer t ica t i on a n i n t e r n ati o n a l l y re c o g n i s e d s t a n d a rd fo r Q u a l i t y Manageme n t Syst ems I t s na t i on wide branch ne t w ork c o m p r i s i n g Pl u m b a n d P a r ts C e nt e r Pi p e a n d C l i m at e C e nt e r I n t e g r at e d S e r v i c e s a n d D r a i n C e nt e r a swe l l a s i t s d i s t r i b u ti o n c e ntre s a r e n o w c e r t i e d u n d e r th e s t a n d a r d w h i c h i s i n d e p e n d e n tl y a s s e s s e d b y a n a c c r e d i t e d th i r d p a r t y I S O 9 0 0 1 c e r t i c a ti o n d e m o n s t r a t e s th at W o l s e l ey h a s i m p l e m e n t e d a n ef fe c t i v e Q u a l i t y M a n a g e m e nt S y s t e m th ro u g h o u t i ts b u s i n e s s w h i c h s a ti s e s a l l of th e re q u i re m e nts fo r th e p r o d u c ts a n d s e r v i c e s i t p r ov i d e s t oc u s t o m e r s H o weve r l a rg e o r s m a l l th e p u rc h a s e c u s t o m e r s c a n b e c o n d e nt th at W o l s e l ey h a s th e n e c e s s a r y p o l i c y sys t e m s p r o c e s s e s a n d p r o c e d u r e s t om a n a g e re s o u rc e s a n d tr a i n i n g th e p l a c e m e nt of q u a l i t y a s s u re d p r o d u c ts o n th e m a r k et a n dth e p r e s e r vati o n and h andling o f pr oduct